Brodosplit terminates contract with Defense Ministry over patrol ship dispute

Split’s Brodosplit Shipyard and its owner, Tomislav Debeljak, have unilaterally terminated their contract with the Ministry of Defense for the construction of three coastal patrol ships.

Defense Minister Ivan Anušić said the shipyard demanded nearly 20 million euros more than the price estimated by two independent experts.

“The issue was the price. Two independent institutions assessed the cost of completing the remaining vessels, and Brodosplit’s offer was about twenty million euros higher. I couldn’t approve that because it would harm the Ministry and the state budget. In the end, Brodosplit canceled the contract. We’ll now find another Croatian shipyard to finish the job at a better price,” Anušić said.

Brodosplit, however, argues that construction costs have risen significantly and that the Ministry failed to honor parts of the agreement.

“We call on the Ministry of Defense, which refers to the same expert reports, to publish them. As a party to the contract, we are placed in an unfavorable position by data leaking from so-called verified sources, while we are bound by confidentiality,” Debeljak said.